Mr. Ho Ren Hua, Chief Executive Officer of Thai Wah Plc or TWPC, disclosed the Q1/2021 performance that the company recorded its net profit of 128 million baht, rising 56% from 82 million baht in the same period of 2020, with special revenue of 43 million baht from acquisitions and gains from the sale of property investment. Its total revenue stood at 2,138 million baht, surging 38% year-on-year from 1, 550 million baht in the year before.
Factors supporting the net profit growth in the first quarter of 2021 are the volume of tapioca starch export rose especially in China, which had a 109% hike of tapioca starch export. This was in line with the country's good tapioca exports while selling prices of cassava improved continuously.
"The Q1/2021 performance was good as expected. Overall, we still have growth in both tapioca starch industry and food business, reflecting the improving export of tapioca starch to overseas markets. The company's growth was in line with the industry, and we also got a boon from the big rise of corn starch price this year as some of our customers have turned to use tapioca starch to replace corn starch," Mr. Ho said.
The CEO states that the company did not get a significant impact from the third wave of COVID-19 outbreak in Thailand as it produces food products and food ingredients, which are essential for daily living. Moreover, most of its tapioca starch products are exported, especially to China and Taiwan.
For the company's food export, this business still has a bright growth prospect particularly in the wholesale and cash mobile unit channels, driven by government's stimulus measures namely 50:50 co-payment, Rao Chana, and Section 33, We Love One Another schemes. Likewise, the proportion of food export this year grows to nearly 20% from 16% last year because the COVID-19 situation in other countries began improving. The company projects its 2021 total revenue will grow at a double-digit rate as the previous year.
Besides, the company will move forward its new business plan to produce "Bioplastic" products, which are agricultural crop-based and 100% degradable, for packaging and agricultural products. The production is expected to start late this year, and revenues will be partially realized this year and fully booked in 2022 onwards.
Source: Thai Wah